Section 26 Defenses to Claims of Unsuitability

• Library: Consumer Law and Practice 2010

A defendant does have defenses to a claim of unsuitable recommendations. For instance, if the customer's signed subscription agreement establishes that the transaction is suitable, the defense of estoppel may prevent the customer from claiming that it was unsuitable. Porter v. Shearson Lehman Bros., 802 F. Supp. 41, 63-64 (S.D. Tex. 1992). Also, a plaintiff investor may not justifiably rely on the defendant's recommendation if the investor could have uncovered the truth with minimal diligence. Brown v. E.F....